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    • Newfoundland and Labrador cautioned about growing debt as province touts success

    Newfoundland and Labrador's provincial flag flies on a flag pole in Ottawa, Friday, July 3, 2020. THE CANADIAN PRESS/Adrian Wyld Newfoundland and Labrador's provincial flag flies on a flag pole in Ottawa, Friday, July 3, 2020. THE CANADIAN PRESS/Adrian Wyld
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    ST. JOHN'S, N.L. -

    Newfoundland and Labrador's auditor general has issued a warning about the province's financial position as the government announced it would finish the 2024-25 fiscal year with a higher-than-expected deficit.

    Denise Hanrahan said today the province finished the previous fiscal year with a net debt of $17.7 billion which, per capita, is double the Canadian average.

    She says economic factors suggest the province's financial position is worsening.

    Meanwhile, the Liberal government released a financial update forecasting a deficit of $218 million for the 2024-25 fiscal year, which is higher than the $152 million estimated in the March budget.

    The update says revenues are down because of a drop in oil prices and production, both of which were partially offset by a lower exchange rate.

    However, it says housing starts are increasing, unemployment is at a near-historical low and the province's real gross domestic product is expected to grow by 3.3 per cent.

    This report by The Canadian Press was first published Oct. 30, 2024.

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    N.L.

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